Yeah people have been predicting that we are now in another big bubble like the one we got ourselves into before that triggered the bail outs. It is starting to tumble already. After the big bail outs "they" made some changes that would facilitate bail in's in the future and the future is coming.

Presuming that something is going to be done relatively soon, whatever that is, should I be sitting on a decent amount of cash in my bank account? I was thinking I should go ahead now and buy the rest of the stuff I need to finish putting my car back together.

I really don't want to donate against my will out of my bank account to pay off my particular banking institutions debt just because I am a saver. This comes with a reg that was changed that now defines banking customers as unsecured bank creditors. Consequently, in an economic reset, the banking customers that have savings will have their savings essentially confiscated on some percentage to help pay off the bank's debt. The bank that I am with is not one of the huge mega banks that would most likely be the ones to do this but who knows.

I don't even think the rest of the stuff I need to order is going to put that big a dent in my account. It is just sitting in my deposit account. I don't have a separate savings account at the bank.

I don't trust banks much. I trust the large brokerage firms like Schwab or Fidellity a lot more. Seems the US public debt at over 20 trillion is going to get real expensive as rates go up. Somethings gonna give at some point, like the fed inflating it's way out of debt. That would be a good case for gold going up. But this has been in the air for like forever. Maybe the time is coming?
Not too political! Right?

Yeah people have been predicting that we are now in another big bubble like the one we got ourselves into before that triggered the bail outs. It is starting to tumble already. After the big bail outs "they" made some changes that would facilitate bail in's in the future and the future is coming.

Presuming that something is going to be done relatively soon, whatever that is, should I be sitting on a decent amount of cash in my bank account? I was thinking I should go ahead now and buy the rest of the stuff I need to finish putting my car back together.

I really don't want to donate against my will out of my bank account to pay off my particular banking institutions debt just because I am a saver. This comes with a reg that was changed that now defines banking customers as unsecured bank creditors. Consequently, in an economic reset, the banking customers that have savings will have their savings essentially confiscated on some percentage to help pay off the bank's debt. The bank that I am with is not one of the huge mega banks that would most likely be the ones to do this but who knows.

I don't even think the rest of the stuff I need to order is going to put that big a dent in my account. It is just sitting in my deposit account. I don't have a separate savings account at the bank.

The FDIC will insure your account to US$250k as long as your institution is FDIC protected. Unless you have more than that you're OK. If you have more than $250k just hanging out in a checking account you probably need better investment advice.

After the bail out by the Fed, regulations got passed to allow for "bail in's" because the Federal Reserve doesn't have another bail out in them at this point. Actually, they most likely do but they do not want to be responsible so they lobbied the world governments(G20) to pass the bail in scheme and they did. Now saving TBTF banks has been passed on to US.

Under a bail in, something happens similar to what happened on Cyprus. The regulations are part of the Dodd-Frank Act in the U.S. It allows the banks to use bank share holders investments as well as depositors and regular banking customers accounts to bail-in the banking institutions if they are about to fail. Pension funds are also considered to be bail in assets now. Derivatives which are again the most likely cause of banks eminent failure are protected. There is presently close to 300 trillion in derivatives outstanding.

Deposits are considered to be unsecured liabilities. The banks have been now defined to be the owners of your deposits. You are considered to be a creditor. In a declared bail-in situation, FDIC protection doesn't work because the FDIC and its responsibilities in a bail in have been re-written to facilitate the bail ins. I believe that the failing bank is supposed to issue you contingent capital bonds(bail in bonds) for confiscating your money but the likelihood of ever cashing those in later and breaking even is very low.

The thing is full of financial mumbo jumbo but this is what I think I have been able to understand and grasp from reading it all. Gave me a head ache.

I too trust those big ol' financial firms. I used to have my money in Enron. After that I decided to spread out a bit and put half in AIG and the other half at Lehman Brothers. Yep, worked out REAL well there.

OK, I did no such thing. But those companies affected people I know. If the FDIC guarantee is no longer quite what we thought it was, that is disturbing. I feel I need to look into that some more. Thanks for the heads up on that.

This doesn't logic out to me. It's still a bail out for one, bail in doesn't fit. Two the first thing that's going to happen is people are going to remove their cash asap after part of it's been taken so the bank fails anyways.

My advice, If you are going to buy something, Buy it now. For two reasons, #1. If overseas parts prices rise (which is most likely to happen), You'll beat it to the punch and save some bucks... #2. Buy the parts that you need now while you still can and while they are still out there. You might not just face increased prices, but increased demand as well for parts that can no longer be easily sourced.

Now is the time to buy.

And the recent stock market drop in the last two days?...? It's most likely just a "Market Correction" based on fears... I would think that it will back to normal within a few weeks. If it's prolonged pain, then that will definitely be a different story.

The FDIC will insure your account to US$250k as long as your institution is FDIC protected. Unless you have more than that you're OK. If you have more than $250k just hanging out in a checking account you probably need better investment advice.

The real turmoil will be in 2024 when there will be uncertainties. Business and individuals will save their money instead of spend or invest because they do not know who the next president will be and what policy changes will come in Nov. Happens ever 8 years.

If you are really worried about the economy, buy gold. It is not effected by inflation.

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